What Is The Difference Between Demographics And Psychographics?

The goal of market research is to paint a clear picture of your potential customers in order to enhance sales, and demographics and psychographics are the tools you need to make it happen. However, it is important to understand the difference between demographics and psychographics in order to gather, interpret and use them effectively.

Demographics provide an outline of your picture, and they and may include characteristics such as gender, age, income, educational level, occupation, number of children and many other basic characteristics.

Psychographics fill in the fine details and bring the image to life by exploring your target audience’s motivations, inhibitions and behaviors. Psychographics can cover a variety of attributes, such as hobbies and interests, values, preferences, lifestyles, schedules, and family dynamics.

How To Gather Market Demographics And Psychographics

Many service businesses rely heavily on demographics to drive their sales, strategies and growth.Just as demographics and psychographics reveal different aspects of your customer base, they must be gathered in different ways as well.

Demographics can be compiled via secondary market research — pre-existing sources such as census records, industry reports and magazine articles.

Psychographics, on the other hand, require primary market research. Primary market research involves analyses that are conducted directly by you or by a company on your behalf in the form or surveys, focus groups, field tests, Web browsing behavior and casual observations.

Because the research is proprietary, you can tailor everything about it — the methodology, the participants, the frequency and the way data is delivered — to your specific needs. Thus, you can use it to reveal the aspects of your customer that are most important to you.

However, there is a cost — in terms of time and money — to primary research, but the return on investment can be well worth it.

How To Use Market Research To Boost Your Business

Now that you know what demographics and psychographics are and how to collect them, you need to know what to do with all that great information.


Many service businesses rely heavily on demographics to drive their sales, strategies and growth. For example, at Bin There Dump That, we offer residential-friendly dumpsters that easily fit in driveways.

Thus, we look for areas with a high volume of homeowners when defining our franchise territories. Household income is also important, as a higher salary typically translates into a higher likelihood of investing in home renovation project which, in turn, would necessitate renting one of our dumpsters.


psychographics, give you the ability to personalize your marketing efforts.When it comes to psychographics, the primary benefit is the ability to personalize your marketing efforts. Instead of marketing to the masses or to a vaguely defined list of contacts, you can now tailor your marketing and your messaging to the specific people on the other end of your communications. Here’s how you can go about doing it:

Look closely at your data: Carefully evaluate your research results to identify pain points, motivators and goals across your entire audience.

Create segments: Look for shared characteristics and divide your customers into different groups.

Put a name to your segments: Your customers are not just a collection of data points and psychographics, so give them a name! For example, your groups can be classified as “new homeowners” or “single moms.” These names will serve as your customer personas for future marketing purposes.

Customize your collateral: For every email, brochure, proposal or flier you create, consider crafting a unique version — with unique messaging — for each persona. The more targeted your material, the more it will resonate with the person reading it.

Keep evaluating your data — and your success: After each campaign, take the time to review what worked and what did not across all of your personas. Keep tweaking your franchise marketing initiatives to find the right tone, words, images, calls to action and other elements that are most effective for your specific customers.

Do Your Market Research On Us

Our franchisees are demographically diverse, hailing from all across North America with a variety of skills, backgrounds, experiences. However, they do share many common psychographic characteristics — a desire to take control of their careers, to financially support their families and their futures, and to deliver the best customer service experience in our industry.

If you share these characteristics as well, we invite you to do your research on us. Start by requesting a free franchise kit today!

Images: White duck, Brain scan

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